Dover Earnings Surpass Estimates in Q4, Revenues Increases Y/Y

Core Viewpoint - Dover Corporation reported strong adjusted earnings per share (EPS) for Q4 2024, exceeding expectations, while total revenues showed slight growth but missed consensus estimates [1][2][11]. Financial Performance - Adjusted EPS from continuing operations for Q4 2024 was $2.20, beating the Zacks Consensus Estimate of $2.08, and slightly up from $2.18 in the same quarter last year [1][11]. - Reported EPS was $1.72, down 7% year over year [2]. - Total revenues for Q4 increased by 1.3% year over year to $1.93 billion, but fell short of the Zacks Consensus Estimate of $1.98 billion [2][11]. - Organic growth for the quarter was 0.3% [2]. Margins and Expenses - Cost of sales decreased by 0.1% year over year to $1.18 billion, while gross profit rose by 3.6% to $746 million, resulting in a gross margin of 38.7%, up from 37.8% a year ago [3]. - Selling, general and administrative expenses increased by 8.9% to $451 million [3]. - Adjusted EBITDA for Q4 was $466 million, a 4% increase year over year, with an adjusted EBITDA margin of 24.2% compared to 23.5% in the prior year [3]. Segment Performance - Engineered Products segment revenues fell by 12.2% year over year to $288 million, missing expectations [4]. - Clean Energy & Fueling segment revenues increased to $528 million from $449 million, exceeding estimates [5]. - Imaging & Identification segment revenues rose by 1.2% to $289 million, but missed projections [6]. - Pumps & Process Solutions segment revenues grew by 7.7% to $479 million, though it also missed estimates [7]. - Climate & Sustainability Technologies segment revenues decreased by 12.8% to $348 million, falling short of expectations [8]. Bookings and Cash Flow - Total bookings at the end of Q4 were $1.94 billion, up from $1.79 billion year over year, exceeding estimates [9]. - Free cash flow for Q4 was $385 million, down from $441 million in the prior year [10]. - Cash flow from operations was $439 million, compared to $499 million in the same quarter last year [10]. Annual Performance and Outlook - For 2024, adjusted EPS was reported at $8.29, up from $7.95 in the previous year, beating estimates [11]. - Total sales for 2024 rose by 1% year over year to $7.75 billion, but missed consensus estimates [11]. - The company expects adjusted EPS for 2025 to be between $9.30 and $9.50, with anticipated revenue growth of 2-4% [12]. Stock Performance - Dover's shares have increased by 33.2% over the past year, outperforming the industry growth of 17.2% [13].